The shareholders' equity section of Pembina Valley Manufacturing Limited's balance sheet at December 31, 2016 is shown

Question:

The shareholders' equity section of Pembina Valley Manufacturing Limited's at December 31, 2016 is shown below.
Preferred shares, non-cumulative
Authorized - 500 shares
Issued and outstanding - 300 shares $ 300
Common shares
Authorized - 100 shares
Issued and outstanding - 20 shares 500
Retained Earnings 192
Total shareholders' equity $992
There is $30 of dividends in arrears on the preferred shares. The value of preferred shares is $300.
Required:
1. Calculate the book value per share of a. the preferred shares; and
b. the common shares.
2. Assume that the common shares were split 2 for 1 on January 2, 2017 and that there was no change in any other account at that time. Calculate the new book value of common shares immediately following the share split.
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